META Meta Platforms Options Ahead Of Earnings

30 Jan 2023

If you haven`t sold META at $341:

Then I think that META Meta Platforms will announce massive layoffs at the earnings date, which the market loves.
Mark Zuckerberg will continue spending billions on building the Metaverse, but the market won`t care as long as they fire people.

Another reason for a happy earnings ending is the FOMC decision to hike the interest rates by 25bps instead of 50bps (I assume).

Otherwise, META loses more ground against TikTok, which took over the globe.
But Mark Zuckerberg doesn`t care about that, because if TikTok really becomes a threat for META (sorry, for the economy), regulators will declare it a spy app, threatening the US national security.
So eventually META will prevail.

If the authorities won`t intervene to help META, i think the stock should end the year around $120.

All the above considered, looking at the META Meta Platforms options chain ahead of earnings , I would buy the $150 strike price Puts with
2023-2-17 expiration date for about
$7.45 premium.
If the options turn out to be profitable Before the earnings release, I would sell at least 50%.

Looking forward to read your opinion about it.

31 Jan 2023

Dagangan aktif

there is an error in the text. I wrote Puts instead of Calls. But in the chart and the rest of the text you can clearly see what i wanted to say. the premium was for calls, not puts. :)

2 Feb 2023

Dagangan ditutup: sasaran tercapai

META $150 strike price calls are trading now at $33.20, from $7.45 when i wrote the article. a decent 445% gain in 3 days! The stock was trading at $184.60 intraday!